Where is the law that says I MUST deposit any check received into a business account?
I don't know if it a law as such or more a requirement. I'm sure if you comb through the IRS documents relating to business operation and required record keeping you will find something.
However, as a sole propriotor I wouldn't think the bank would have a problem cashing it as long as it's properly endorsed.
Nothing to do with being a sole proprietor, it depends entirely on what name you have on the account. You could be Joe Schmoe Electric Inc and if you had a check made out to Joe Schmoe they would cash it as long as you were Joe Schmoe. If it were made out to Joe Schmoe Electric they would not cash it, you would have to deposit into the Joe Schmoe Electric Inc account. The bank doesn't care where the check came from only that it is made out to the person who is cashing it or sometimes that it is endorsed by that person. On the other hand anybody can deposit money into an account but checks must be made out to the name on the account.
These are bank rules and sometimes tellers don't always pay attention and things will slip by or they will bend the rules. That doesn't mean that that's the way they are supposed to operate.
-Hal
